This paper reviews the global and domestic development of microcredit movement and examines its economic effects. Most research papers report the significantly positive effects of the microeconomic programs on poverty
alleviation and reducing income i...
This paper reviews the global and domestic development of microcredit movement and examines its economic effects. Most research papers report the significantly positive effects of the microeconomic programs on poverty
alleviation and reducing income inequality. Some papers, however, report the insignificant or negative effects. Next, comparing the two alternative models of microcredit - the social enterprise Grameen Bank model and the commercially oriented SKS Microfinance model - the essential factor that may ensure the sustainability of microcredit movement is shown to be the relationship banking capability.